NABO Economic Trends (No. 29)

Published on May 30, 2022
Published by Economic Analysis Department

∎ Economic Trends
 The Korean economy has recorded a trade deficit for the past two consecutive months as import increase expands despite hikes in exports. Exports in April increased by 12.6% YoY to USD 57.69 billion, extending their 18-month growth streak, and daily average exports recorded USD 2.46 billion, up 15.0% YoY. Imports grew by 18.6% YoY to USD 60.35 billion with their 16 consecutive month rally due to a surge in raw material prices such as energy and expanded imports of intermediate goods. Although sales of non-durable goods such as food and beverages increased as the spread of COVID-19 peaked in March, sales of durable goods declined due to decreased outdoor activities, and retail sales diminished MoM as well. In addition, the consumer price index continues to rise at a steep pace due to a sharp jump in international oil prices as well as price hikes in agriculture, livestock and fishery products, and industrial goods and services. In March, production increased in both the manufacturing and service sectors, growing in both MoM and YoY terms. In April, employment continued to recover steadily from the previous month, and the total number of employed persons increased by 865,000 YoY, a slightly sharper increase from the previous month. In the domestic financial markets, interest rates and exchange rates continued to rise due to monetary tightening measures and an increased preference for safe assets. In April, crude oil and coal prices fell MoM, while Food and Cereals Price Indices rose slightly, and volume of electricity traded was an historic high for the month. Also, due to the rise in international energy prices, power generation costs saw a dramatic surge YoY. The volatility rate of the nationwide housing sales price index in April increased slightly MoM as steeper increases in metropolitan areas and municipalities were observed.